NBR reduces tax rate to 15% on capital gains above Tk 50 lakh
The National Board of Revenue (NBR) today lowered the tax rate to 15 percent on capital gains above Tk 50 lakh from selling shares of listed companies on the stock exchanges with the objective to encourage investment in capital market.
Prior to the rate cut, taxpayers had to pay 30 percent tax on the capital gains over Tk 50 lakh if the gains are realised in five years at any time of a year. In case of sales of shares after years of purchase, the rate of tax on capital gains would be 15 percent.
Following the relaxation, the tax rate on capital gains would be 15 percent regardless of the amount of gains and the time of sales.
As a result of the reduction in the rate of tax on capital gains, overall tax burden on taxpayers with over Tk 50 crore would fall to 20.25 percent from 40.5 percent earlier. Taxpayers with lower wealth will also see their overall tax burden to drop in line with the rate of surcharge on net wealth.
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